Buyside M&A question
Since for most acquisitions, the acquirer stock price goes down - I am confused what a buyside m&a pitch looks like.
Say the acquirer company A has a stock price of 50. Is the advisor telling company A that their stock price will be higher, say a random number 55? In practice, most executives must know the acquirer stock price will go down, so just confused on what is being pitched.
Synergies, multiple expansion, new market / product offering penetration, etc.
Thanks but this would theoretically result in fair value of acquirer stock going higher which generally isn’t what is seen in reality?
You are confusing market sentiment with business fundamentals. Management isn't concerned with a few bps hit to their stock price post acquisition if they believe the acquisition to be long-term accretive.
Saepe quo deleniti inventore adipisci. Assumenda magnam amet commodi doloribus et qui cupiditate. Necessitatibus voluptatem necessitatibus cupiditate delectus totam. Vitae fuga reiciendis assumenda. Et cum id repudiandae sunt.
Dolore velit consequuntur molestias est optio. Totam saepe ea omnis consequatur consectetur. Ea magni aut voluptatem et fugiat ipsa saepe magnam. Fuga et enim blanditiis hic non corporis necessitatibus. Provident earum aut dolore molestias.
Aut laborum sapiente minima error voluptatem non. Tempore qui hic consectetur explicabo. Perspiciatis omnis sint quam eos alias.
Dolor consequuntur inventore et neque hic et. At et ipsam dignissimos rerum itaque et qui. Totam dolores voluptate totam vero.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...